Data gleaned on the website of the Central Bank of Nigeria (CBN) at the weekend showed that currency outside of bank vaults across the country soared by N302.996bn or 15.57% to N2.248tr when compared to the N1.945tr recorded in the corresponding period of last.
The growth is despite the commencement of punitive charges by banks on cash deposits and withdrawals over the stipulated threshold; just as the festive season had ended.
Month-on-Month, however, the figure represented a drop by N193.216bn, or 7.91%, when compared to the N2.441tr reported in the corresponding period of December, which was the peak of the yuletide festivities.
Recall that the CBN recently approved bank charges on deposits and withdrawals above the set threshold in six states with commercial cities across the country from Wednesday, September 18, 2019.
A circular by Sam Okojere, CBN’s Director, Payments System Management Department, titled “Re: Implementation of the cashless policy,” listed the states as Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT), Abuja.
The move which is part of efforts to migrate more people onto electronic payment platforms is expected to drastically reduce the cost of currency management in the country, with withdrawals of over N500,000 for individual accounts attracting 3% processing fees; and 2% for lodgments of similar amounts with effect from.
According to a circular to all deposit money bank (DMBs), which also announced the commencement of the charges on deposits in addition to already existing charges on withdrawals, corporate accounts will, however, attract 5% processing fees for withdrawals and 3% for lodgments of amounts above N3,000,000 from that date.
Nationwide implementation of the cashless policy, the circular noted, will take effect from March 31, 2020.